The effect of straight-line and accelerated depreciation rules on risky investment decisions: An experimental study
| Autor: | Martin Fochmann, Nadja Wolf, Hagen Ackermann |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
accelerated depreciation
media_common.quotation_subject H24 risk-taking behavior Dewey Decimal Classification::300 | Sozialwissenschaften Soziologie Anthropologie::330 | Wirtschaft Accelerated depreciation lcsh:Finance lcsh:HG1-9999 0502 economics and business C91 straight-line depreciation Econometrics Economics ddc:330 Asset (economics) D14 050207 economics Consumption of fixed capital media_common 050208 finance Actuarial science Depreciation 05 social sciences Subsidy Payment portfolio choice behavioral accounting Investment decisions Portfolio behavioral taxation taxation tax perception Finance |
| Zdroj: | International Journal of Financial Studies 4 (2016), Nr. 4 International Journal of Financial Studies; Volume 4; Issue 4; Pages: 19 International Journal of Financial Studies, Vol 4, Iss 4, p 19 (2016) |
| Popis: | The aim of this study is to analyze how depreciation rules influence the decision behavior of investors. For this purpose, we conduct a laboratory experiment in which participants decide on the composition of an asset portfolio in different choice situations. Using an experimental environment with different payment periods, we show that accelerated compared to straight-line depreciation can increase the willingness to invest as hypothesized by theory. Additionally, we are able to replicate the unexpected finding of Ackermann et al. (2013) – that introducing a subsidy leads to a lower willingness to take risk although the net returns are kept constant – with our setting which is different to their experimental environment. |
| Databáze: | OpenAIRE |
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